reply to post by Total Reality
I'd like a breakdown on the party affiliation of the representatives, first of all.
More importantly, before you all go get excited about the idea of a flat consumption tax, do a bit more thinking about what it actually does.
Its great virtues are its simplicity and its perceived "fairness." But, just how fair is it? Those who have been pushing the flat tax are
overwhelmingly conservative GOP, but they do not like it for the reasons you would think they do.
A flat consumption tax--standing alone, without a mirroring tax on investment income--and you can be sure you will not hear a word about this, as they
try to sell you the horse with three legs--is actually a regressive tax in sheep's clothing.
Think about it: you earn, say, $1000 per month, and almost all your income goes to buy food, clothing, gas, shelter, etc. Paying a flat tax of say 15%
means that about $120-130 of your monthly budget goes to taxes and will not be offset, and you need that money desperately to live a decent life.
However, say you make $1,000,000 a year. And there are many who do. These rich people will only pay a relative pittance--perhaps 3-5% of their
income--in a tax scheme based on consumption.
How much food, clothing, etc., after all, can even a rich person buy?
And you hear nothing about a similar tax on investment income--passive profit that comes simply from using all your money to make even more. No, God
This is why these "conservatives" love the flat tax. It's a scam. It throws the greatest tax burden on those who make the least, gives the rich a
free ride, and sounds so, so fair.
Don't get suckered into it.
edit for clean-up
[edit on 5-2-2009 by gottago]